Details of the interim trade agreement between India and the United States have begun emerging following the announcement of the deal earlier this week. According to a government official cited by PTI, India will grant zero-duty access to US motorcycle manufacturers for bikes with engine capacities ranging from 800-1,600 cc and above.
This development is expected to benefit American motorcycle brand Harley-Davidson, whose products are highly popular among enthusiasts. The official stated that the duty elimination will take effect from the date of the agreement’s implementation.
Harley-Davidson’s lineup includes models such as the Street 750 and Iron 883, among others.
The announcement follows India and the US reaching a framework on Saturday for the first phase of their bilateral trade agreement, under which both nations will reduce import duties to enhance trade volumes.
The first phase of the agreement is anticipated to be signed by mid-March. As per the terms, the US will lower reciprocal tariffs on Indian goods to 18 per cent from the previous 50 per cent.
Last year, the government had already reduced import duty on motorcycles with engine capacities up to 1,600 cc from 50 per cent to 40 per cent.
Will zero-duty access hurt local production?
The answer is no. India has a limited market for high-end premium motorcycles, and the US holds only a minimal share in this segment.
While the market for high-end bikes remains small, the move carries significance.
US President Donald Trump has repeatedly raised concerns about India’s import duties on Harley-Davidson motorcycles, claiming the company faced difficulties selling its bikes in the country due to high tariffs.
Also Read: India-US Tariff : Market Access Expanded in Key Sectors
In 2020, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market. Under the agreement, Hero MotoCorp would develop and sell a range of premium motorcycles under the Harley-Davidson brand in India.
Additionally, Hero MotoCorp was given the mandate to sell Harley accessories and general merchandise, riding gear, and apparel through both Harley-Davidson dealer networks and its existing sales channels.
India has permitted the import of several US goods at zero tariffs where domestic production is insufficient, or to meet quality standards and reduce market prices. Union minister Piyush Goyal announced that several products, including alcoholic beverages, cosmetics, and medical devices, will face zero tariffs in India.
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